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American DG Energy to Oversee Complete Energy Plant Conversion

January 23, 2014

American DG Energy Inc. (NYSE MKT: ADGE), a leading On-Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, announced that it has reached agreements with Sunstone Hotel Investors Inc. to manage an energy plant conversion, along with installation and maintenance of a combined heat and power (CHP) system at the DoubleTree Suites by Hilton New York City - Times Square. The agreements should provide American DG Energy with approximately $1,300,000 in revenue in 2014.

Having completed a feasibility study for the property, American DG Energy was selected to oversee a complete energy plant conversion to reduce the property's dependency on utility steam and electricity and convert to a natural gas-based energy system. The conversion project will include five (5) 2 MMBTU boilers, two (2) 500-ton chillers and a 200 kW CHP system. Upon completion, the DoubleTree Suites by Hilton New York City - Times Square is expected to achieve significant energy cost savings, reduce their carbon footprint by 2,208 tons annually, and generate attractive return on incremental invested capital.

"The DoubleTree Guest Suites Times Square is a popular, high occupancy hotel that delivers a truly rewarding experience to each guest," stated W. Guy Lindsey, Senior VP Design & Construction of Sunstone Hotel Investors. "We were seeking to further improve guest comfort, lower property operating costs and enhance the hotel environmental profile. American DG Energy is providing the technology and management to accomplish this from feasibility and engineering to installation and operations of new efficient energy systems."

Sunstone Hotel Investors Inc. is a hotel investment company with interests in 29 hotels with 13,740 rooms and an enterprise value of approximately $3.8 billion. DoubleTree Suites is the only all-suite hotel on Broadway in the heart of Times Square with 460 two-room suites.

On-Site Utility

American DG Energy sells the energy produced from an onsite energy system to an individual property as an alternative to the outright sale of energy equipment. On-Site Utility customers only pay for the energy produced by the system and receive a guaranteed discount rate on the price of the energy. All system capital, installation and operating expenses are paid by American DG Energy.

About American DG Energy

American DG Energy supplies low-cost energy to its customers through distributed power generating systems. The Company is committed to providing institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by local utilities - without any capital or start-up costs to the energy user - through its On-Site Utility energy solutions. American DG Energy is headquartered in Waltham, Massachusetts. Learn more about how American DG Energy (NYSE MKT: ADGE) reduces energy costs at www.americandg.com or follow us on Facebook and Twitter.

Forward-Looking Statements

This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company's website and in Securities and Exchange Commission filings. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.